Guidelines on Risk Based Capital Adequacy for Banks Revised regulatory capital framework in line with Basel II

Website: www.bangladesh-bank.org www.bangladeshbank.org.bd Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka December 29, 2009 BRPD Circular No. 20 Date:--------------------- Poush 15, 1416 Chief Executives All Scheduled Banks in Bangladesh Dear Sir, Guidelines on ‘Risk Based Capital Adequacy (RBCA) for Banks’ (Revised regulatory capital framework in line with Basel II) Please refer to BRPD Circular No. 09, dated December 31, 2008 on the captioned subject. Guidelines on ‘Risk Based Capital Adequacy (RBCA) for Banks’ (Revised regulatory capital framework in line with Basel II) was introduced from January 01, 2009 parallel to existing BRPD Circular No. 10 , dated November 25, 2002. From January 01, 2010 Basel II regime will be started and the guidelines on RBCA will fully come into force with its subsequent supplements/revisions. Accordingly, instructions regarding Minimum Capital Requirement (MCR), Adequate Capital and Disclosure requirement as stated in the guidelines have to be followed by all scheduled banks for the purpose of statutory compliance. This circular will replace BRPD Circular No. 10, dated November 25, 2002 and its amendment thereof. Regular quarterly reports in line with the guidelines should reach the Department of Off-site Supervision (DOS) by the end of the month following the end of each quarter. Yours sincerely, (Abu Hena Mohd. Razee Hassan) General Manager Phone: 7117825